Given:
$300 per month in 12 years.
1 year = 12 months = 300 x 12 = $3600
For 12 years = $3600 x 12 = $43 200
Principal (P) = $43 200
rate(r) = 3.05% = 0.0305
Time (t) =12
n = 12
Using the formula below:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Substitute into the formula and evaluate
[tex]A=43200(1+\frac{0.0305}{12})^{12\times12}[/tex]
[tex]=43200(1+0.00254166667)^{144}[/tex][tex]=43200(1.00254166667)^{144}[/tex][tex]\approx62263.55[/tex]
Therefore, the account balance at the end of the 12 years is $62263.55
